Two-wheeler loan: The benefits of securing one from a cooperative bank
Article by Drivio | 17th May 23
Since cooperative banks aim to financially strengthen the community, they offer two wheeler loans at lower interest rates. Besides, you can enjoy flexible repayment tenure, easy approval, and customized banking services from these financial institutions.
Owning a motorcycle in India happens to be a privilege. Particularly, if you regularly navigate through heavily congested areas or high traffic volume, a two-wheeler turns out to be your rescuer. Well, if you are planning to purchase a motorcycle or scooter, it’s logical to take a two-wheeler loan. This financial privilege will help you finance your purchase, as you split your liabilities into easily manageable EMIs.
Do you know that approaching a cooperative bank for a two-wheeler loan can help you qualify for financing easily? Compared to commercial banks, cooperative banks do not consider profit-making as their primary goal. Therefore, the cooperative bank loan advantages include faster approval, less stringent eligibility criteria, flexible loan tenure, and lower rates of interest.
Let’s check out all the loan benefits when you finance your new two-wheeler through a cooperative bank.
What is a cooperative bank loan for two wheelers?
Just like commercial banks, cooperative banks offer different types of loans to finance automobiles, motorcycles, homes, and support businesses. Therefore, you can approach a two-wheeler loan to finance your new motorcycle through a two-wheeler loan.
As a financial institution, the members of a cooperative bank operate the organization. Usually, a group of people establish cooperative banks when they share a common interest. For instance, they might be a part of the same industry or the same community. The prime goal of a cooperative bank is to offer loans or financial privileges at affordable rates to its members. Therefore, low interest is one of the several loan benefits of a cooperative bank.
What are the benefits of taking a two-wheeler loan from a cooperative bank?
Let’s understand the prime cooperative bank loan advantages in detail.
1. Affordable rates of interest
One of the key reasons to take a two-wheeler loan from a cooperative bank is the low interest rate you can enjoy. Given that the key motto of cooperative banks is social welfare rather than profit-making, loans are available at lower rates in these institutions. This brings you the scope to save significant amounts of money over the next few years on interest.
In commercial banks, the interest rate on two-wheeler loans can be as high as 25%. On the contrary, cooperative banks can offer you the same kind of privilege at rates lower than 9%.
2. Flexibility in repayment
Compared to commercial banks, cooperative banks offer more flexibility while you repay loans. For instance, if you decide to pre-close a loan from a commercial bank, they would charge a penalty. Cooperative banks are more lenient and don’t charge these penalties. Moreover, you may have the option of making part payments to cooperative banks, enjoying better financial ease.
So, if you have an irregular source of income or your financial condition improves over time, it’s wise to obtain your two-wheeler loan from a cooperative bank.
3. Customized banking services
While you explore the loan benefits of cooperative banks, it’s hard to overlook the personalized banking services that they offer. These institutions are community-oriented, and offer customized services to their clients.
Cooperative banks in India primarily hire staff familiar with local demographics. Naturally, you can enjoy a tailored banking service and seek personalized financial advice from these professionals. So, when you apply for a two-wheeler loan, you would be more comfortable signing the loan agreement. The staff would also help you get a better understanding of the process of loan disbursement.
4. Faster loan processing
The loan processing procedure at cooperative banks is usually fast and simple compared to commercial banks. When you approach a commercial financial institution or NBFC, the authorities tend to be stringent while evaluating your profile. Besides, they have stricter eligibility criteria that sometimes make it difficult to qualify for financial privilege.
Now, if are in need of urgent financing while purchasing your motorcycle, approaching a cooperative bank would pay off better. They don’t have stringent eligibility criteria, which ensure faster loan approval.
5. Supports local communities
Cooperative banks support local communities intheir economic growth. Often, these financial institutions focus on underserved areas. Therefore, if you reside in a rural area or where commercial banking services prove to be too expensive, it’s logical to seek a two wheeler loan from a cooperative bank. Promoting financial inclusion is the sole objective of cooperative banks.
We have discussed the key loan benefits of taking a two wheeler loan from a cooperative bank. Ranging from low rates of interest to faster processing and easier eligibility, these financial institutions offer a plethora of advantages. So, if you are planning to purchase a new motorcycle, reach out to one of the cooperative banks for affordable financing options.
Besides, you would be contributing to the local economic growth when you take a loan from cooperative banks. On your end, you would enjoy more freedom and convenience while repaying your loan to the lender. Carefully evaluate all your repayment options and check the terms and conditions before applying for your two wheeler loan.